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Applying for exemptions and modifications

You can apply to AUSTRAC for an exemption from one or more of your obligations under the AML/CTF Act or FTR Act. You can also apply to have your obligations under the AML/CTF Act modified. Other exemptions from obligations are set out in legislation and will apply to you if you meet the relevant criteria.

There are two ways to apply for an exemption:

  • You can apply to have an exemption made through the AML/CTF Rules that will apply to all reporting entities and/or designated services that fit the criteria. This is known as a ‘general exemption by Rule’, and is made under section 247 of the AML/CTF Act. It is usually made by a group of reporting entities (or on behalf of a group of reporting entities by a representative body such as an industry association).
  • You can also apply to have an exemption from provisions in the AML/CTF Act or FTR Act made specifically for you. Under the AML/CTF Act you can also apply for a modification of provisions. These specific exemptions are made under section 248 of the AML/CTF Act and section 41A of the FTR Act.

Exemptions may be made subject to conditions. Failure to comply with a condition is a civil penalty offence. Modifications are not available for obligations under the FTR Act.

We publish lists of exemptions and modifications that have been granted and revoked.

How to apply

To find out how to apply for an exemption, you should read our Exemption policy.

Exemptions are not a way for you to avoid meeting your obligations. We will only grant an exemption where it is clearly required. Factors that we will take into account in assessing any application include:

  • the money laundering and terrorism financing risks faced by your business in its provision of designated services
  • whether or not the AML/CTF Act was intended to apply to your particular type of business or organisation
  • whether the costs and effort for you to comply would be unreasonable when compared to the risks your business or organisation faces
  • whether your business or organisation would suffer a competitive disadvantage if it was required to comply with the Act.

The content on this website is general and is not legal advice. Before you make a decision or take a particular action based on the content on this website, you should check its accuracy, completeness, currency and relevance for your purposes. You may wish to seek independent professional advice.

Last updated: 2 Jul 2019
Page ID: 140

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